Grain Prices surge; MON 863 cleared by EU for feed use

Grain Prices surge

Though the monsoon has been good in most parts of India and Government of India reports a higher grain production, market sentiments prove otherwise. Midweek saw a surge in prices in almost all commodities across all states though the future prices were a little low. The spot prices on the other hand very a little higher at Rs.6100 ($140) per MT at Nizamabad (Andhra Pradesh) and Rs.5640 ($130) at Davangere (Karnataka).

Indications are for a low crop of coarse cereals. The total area as per GOI is still not covered (21.6 Mill Hac against 22.2 mill hac last year), of which Maize is 6.8 mill hac against 7.26 mill hac last year. But with areas like Maharahstra, North Karnataka which produce bulk of maize effected and with no time for re-sowing the production is likely to be effected.

In the US the WASDE report was out on Aug 12, 2005. The report indicates a lower production of corn for the year 2005/06. Of the total area of 81.6 million acres planted 74.4 million acres is expected to be harvested (91.17%), with an average production of 3.535 tons/acres, producing 263 million metric tons of corn. This is lower than expected in July report by almost 11 MMT, due to decreased moisture and drought conditions prevailing in US.

Of the total production about 95.25 MMT (36.21%) is expectedto be used for feed and residual purposes, while food, seed and industrial sector are expected to utilize 72.90 MMT (27.5%) of the production. Ethanol use is expected to remain same as in July report at 38.10 MMT (14.48%), but the end stocks will to 48.26 MMT, almost 8.64 MMT reduction from the July report.

The detailed report can be found at

http://usda.mannlib.cornell.edu/reports/waobr/wasde-bb/2005/wasde08.txt

The prices in US also came down. CBOT closed at $85.79 per MT for September delivery, which translates to $105 per MT FOB US gulf.

MON 863 cleared by EU for feed use (from The Guradian)

Despite strong opposition from half of EU 25 countries, the European commission cleared imports of genetically modified maize, MON 863 for use as animal feed. A 10 year 10-year licence was granted to Monsanto to export the maize.

This is the third GM product to be approved by the EU since the end of its six-year moratorium in April last year, and it comes after a tortuous authorisation process. The variety has been under the scanner for last two months and several EU governments and environmental activists have consistently questioned the safety of the maize variety known as MON 863.

In September, EU health ministers will vote on whether to clear the same maize for human consumption. Environmental groups argue that GM crops have not been proved to be safe for human consumption and may contaminate other crops, but the commission insisted the maize was subject to "a rigorous pre-market risk assessment".

Though the question is still debatable and needs serious education effort from companies engaged in biotech research, non government organizations and governments who are all part of the system. In the last 10 years there has been no report when a biotech crop has affected the health of the living being (human or animal) or has caused any effect on the diversity of the countries flora and fauna.

Even reports from Mexico indicate that there are no transgenic in the native landraces of maize in Oaxaca. The Us and Mexican researchers screened for two transgene elements that are present in all commercialized biotech maize varieties using highly sensitive PCR-based markers. No transgene sequences were found in 125 fields and 18 localities in the State of Oaxaca during 2003 and 2004. The transgenes were not present in spite of approved import of
US and Canadian corn grain into Mexico.

Biotech crops are more thoroughly studied, regulated than regular crops. Advantages seen by farmers in countries like China, US, Argentina, South Africa, India can not be sidelined.

In China, biotech cotton has helped reduce the insecticide use to two thirds. In US and Argentina farmers ahev adopted technologies that reduce soil erosion. In India, South Africa and China, biotech Cotton has helped small farmers in getting better yields and increase net incomes.

Amit Sachdev
Representative
U S Grains Council, India
bluecross303@gmail.com